Govt plans 100% FDI for medical devices manufacturing

In order to encourage domestic manufacturing of medical devices, the centre government is reportedly planning to frame a separate policy for allowing 100 per cent foreign direct investment (FDI) in the manufacture of medical devices, through the automatic route, according to a Business Standard report. 

 

According to a recent report from The Boston Consulting Group and Confederation of Indian Industry (CII), the medical technology sector in India was estimated at $6.3 billion in 2013, growing annually at 10-12 per cent. The report says the sector is highly under-penetrated, contributing merely seven to eight per cent of the spending on health care, compared to 18 per cent on pharmaceuticals.

 

The government’s plan is to encourage greater investment from abroad in the health care and diagnostic segment, thus creating a major potential market for manufacturing of medical equipment and medical devices in India.

 

FOR COMPLETE REPORT READ: FDI policy for medical devices on the cards